LUSAKA, Dec 12 (Reuters) - Zambian, Tanzanian and Ugandan
currencies are expected to firm next week while Nigeria's should
remain stable.
ZAMBIA
The kwacha ZMW= is likely to hold firm after the central
bank raised the statutory reserve ratio for commercial banks and
asked them to maintain statutory reserve requirements on a
daily rather than weekly basis.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 14.3800 per dollar,
up from a close of 15.1000 a week ago.
"The kwacha should continue trading within the current
levels owing to the monetary policy pronouncements by the
central bank," independent financial analyst Maambo Hamaundu
said.
On Monday, Zambia's central bank announced that the
statutory reserve ratio for commercial banks would be increased
to 9% from 5% from Dec. 23 and directed banks to immediately
start maintaining statutory reserve requirements on a daily
basis.
TANZANIA
Tanzania's shilling TZS= is expected to slightly
appreciate next week due to reduced activities in the market and
month-end dollar sales to meet local currency obligations.
Commercial banks quoted the shilling at 2,293/2,303 on
Thursday, the same levels as a week earlier.
"Corporates will be buying the shilling next week to meet
their end-month obligations such as tax and salaries before
going for holidays," a trader at one commercial bank in Dar es
Salaam said.
UGANDA
The Ugandan shilling UGX= is seen strengthening over the
next one week on the back of inflows from charities and
remittances from Ugandans working abroad.
Commercial banks quoted the shilling at 3,668/3,678,
compared with last Thursday's close of 3,680/3,690.
A trader at a leading commercial bank said the shilling
would draw some support from conversions by non-governmental
organisations (NGOs) to meet outstanding obligations for the
year and also remittances.
"This is around the time we tend to see large volumes of
inflows from these two sources," he said, adding he forecast the
shilling to trade in the 3,650-3,680 range over the next week.
NIGERIA
Nigeria's naira NGN= is seen stable next week supported by
the central bank after it weakened on the over-the-counter
market as investors repatriated dividends and profits from the
bond market, traders said.
The naira eased as low as 364 to the dollar this week before
firming to trade at a range of between 363 and 363.50. The
currency had been quoted at a range of 362-362.50 last week.
The currency was quoted at 306.95 on the official market,
supported by the central bank. Nigeria operates a multiple
currency regime.
"We are seeing offshore outflows and not much is coming back
in," one trader said. "I expect that to continue next week. If
there is no anchor, the currency could weaken."